Why did Jet defer Q1 results? NSE, BSE, Sebi smell something fishy

New Delhi: Regulator Sebi is looking into Jet Airways' deferring the announcement of June quarter results following reservations expressed by the airline's audit committee while stock exchanges have also sought information from the company, sources said.

The board of directors of Jet Airways, which is grappling with financial woes, on August 9 deferred the matter of consideration of the unaudited financial results for the June quarter.

Sources said that Sebi is looking into the airline delaying June quarter results after the carrier's audit committee expressed reservations.

The regulator is concerned about any possible lapses in terms of disclosure and corporate governance norms by Jet Airways. Sebi is also in touch with the stock exchanges on the Jet Airways matter, they added.

The BSE said the disclosure by Jet Airways regarding the delay in first quarter results lacked "certain information" and asked the airline to submit complete information that is available with it, for compliance with the requirements of Regulation 30 of listing agreement.

Regulation 30 pertains to disclosures.

"It is observed that the disclosure lacks certain information required to be disclosed to the exchange... while it is disclosed that the meeting is adjourned, the date and place of the adjourned board meeting are not stated," the BSE said.

Further, the exchange has sought more clarification on the matters pending for closure of unaudited financial results for the quarter ended June 30, 2018, of the company, on account of which the results were not recommended by the audit committee to the board.

In a BSE filing last night, the Naresh Goyal-run airline said its board has decided not to review the unaudited financial performance for the June quarter.

"The audit committee did not recommend financial results to the board for its approval, pending closure of certain matters," the airline had said.

The BSE has asked the airline whether there were any other agenda items discussed in the board meeting, which merited disclosure under Regulation 30, other than the unaudited financial results, to the exchanges.

"If so, why have the same not been submitted," the exchange said.

Referring to a media report about the airline's Audit Committee Chairman resigning from the panel as well as the board, both the BSE and the NSE have sought clarification.

"In this regard, exchange has advised the company to provide clarification/ confirmation on the news item in detail including whether you/ company are aware of any information that has not been announced to the exchanges which could explain the aforesaid movement in the trading," the NSE said.

The BSE has asked the airline for a response in a "definitive manner, along with stated reasons for the same".

In a regulatory filing, the airline said the appointment of S Vishvanathan as an Independent Director expired on August 9. "Accordingly, he has ceased to be a Director on the board of the company with effect from that date," it added.

According to another regulatory filing, shareholders of Jet Airways have approved the appointment of former Civil Aviation Secretaries Ashok Chawla and Nasim Zaidi as an Independent Director and Director, respectively.

Besides, they have given their nod for appointment of Harsh Mohan and Kevin Nolan Knight as Directors, and Sharad Sharma as an Independent Director.

During the annual general meeting on August 9, the shareholders also cleared the re-appointment of Anita Goyal as a Director.